Google to acquire 5.4% equity in Cipher Mining, providing $1.4 billion in guarantees for its data center lease contract

According to Foresight News, according to Bloomberg, Google will acquire the right to purchase a 5.4% stake in crypto mining company Cipher Mining Inc., which said in a statement that Google agreed to guarantee a $1.4 billion obligation in the contract signed by Fluidstack and Cipher. Fluidstack signed an initial 10-year agreement with Cipher to lease its data center capacity, which is equivalent to about $3 billion in revenue. Cipher's data center was used to mine cryptocurrencies. The company said it will use Google's support agreement to borrow funds for expansion. Cipher said the contract includes two possible five-year extensions, which would add an additional $4 billion in revenue. Cipher shares rose 24% at one point in pre-market trading on the New York Stock Exchange. The stock closed at $14.14 on Wednesday, more than tripled this year.

This is similar to a deal Google has reached with TeraWulf Inc., another cryptocurrency mining data center operator, which has acquired warrants to acquire up to 14% of the company's shares. In the deal, Google also agreed to support a ten-year Fluidstack contract to purchase its capacity.

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